Highlights

  • MGX Resources and Crestlink Investments are close to settlement on the Koolan Island sale, with legal and transfer work described as near complete.
  • The transaction values Koolan Island at A$20.2 million payable at completion plus up to A$5 million in contingent consideration.
  • Koolan Island hosts a high-grade iron ore resource with a sea dam separating the main ore body from the sea.
  • After divestment, MGX Resources intends to redirect attention to its remaining Pilbara and mid-west iron ore assets.

MGX Resources Limited (ASX:MGX) said during October 2026 that its sale of the Koolan Island iron ore mine to Crestlink Investments is approaching settlement, with legal documentation and transfer processes described as nearly complete.

The Koolan Island Transaction

The binding sale agreement between MGX and Crestlink was announced in an earlier quarter. Under the terms, Crestlink will pay A$20.2 million at completion, with a further contingent amount of up to A$5 million payable upon certain production or other milestones being achieved after completion. Total consideration is therefore up to A$25.2 million. MGX said in its October update that completion documentation is in an advanced state and settlement is expected shortly, though no specific date was committed to. Koolan Island operations have been on care and maintenance under MGX.

What Makes Koolan Island Distinct

Koolan Island is in the Kimberley region of Western Australia, accessible by sea and air. Its iron ore resource is high grade — the site historically shipped ore grading around 65% iron. A sea dam separates the main ore body from the sea; a breach of the dam in 2014 flooded the main pit and required several years of remediation work before MGX could consider recommencing operations. The practical and financial complexity of managing the dam is a key feature of the asset.

Post-Divestment Focus

Once Koolan Island settles, MGX said it plans to focus on its Pilbara and mid-west iron ore assets, which include the Shine joint venture and other tenements in Western Australia. No binding agreements or timelines for those assets have been announced.

Pending Completion

The main risk flagged is completion risk — settlement has not yet occurred, and until it does, the A$20.2 million upfront payment and contingent amounts remain at risk. Regulatory, ministerial and third-party consent requirements were not detailed in the update. The company said it would advise the market when completion occurs.